Slimmer-Than-Expected Q2 Losses Boost Big Lots Stock

Big Lots stock has shed more than 50% in 2022

Digital Content Manager
Aug 30, 2022 at 9:25 AM
facebook twitter linkedin


Retail name Big Lots Inc (NYSE:BIG) just entered the earnings confessional with second-quarter losses of $2.91 per share, which was slimmer than analysts expected. Big Lots' revenue of $1.35 billion also topped estimates, however, the firm predicted that its current-quarter comparable sales would fall to the low double-digit range, compared to last year's numbers. In response, BIG is enjoying a pre-market pop, last seen up 3.9% at $22.39. 

The stock has been chopping lower for the better part of the year, with pressure at the 130-day moving average rejecting two of the stock's braver breakout attempts. The 80-day moving average has stepped in as a more immediate rejection level on the charts, and could act as pressure for any additional upside from the equity. Year-to-date, BIG sports a 52.2% deficit. 

Analysts have yet to chime in, but the sentiment surrounding BIG is gloomy. Five of the eight in coverage call the stock a "hold," while the remaining three say "sell" or worse. Plus, the 12-month consensus price target of $21.43 sits at a slight discount to current levels. 

Options traders have taken a more bullish stance. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day call/put volume ratio of 2.10, which stands higher than 80% of readings from the past 12 months. In other words, long calls are getting picked up at a quicker-than-usual clip right now. 

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.72 stands in the low 19th percentile of its annual range. This implies short-term options traders are more call-biased than usual. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners